1. © 2009 VMware Inc. All rights reserved IT Trends and Industry Vision Doug Bourgeois, Vice President, Chief Cloud Executive, VMware US Public Sector June 26, 2013 Best Practices for Consolidation, Efficiency and Agility in the Data Center

2. 2 Agenda  Background and IT Industry Trends  Journey to IT as a Service  Phase 1: Data Center Consolidation  Phase 2: Software Defined Data Center  Phase 3: Hybrid Cloud Computing  Transforming the Organization

3. 3 IT Trends 1.Transition to IT as a Service 2.Software Defined Data Center 3.Multi-device Mobility 4.Big Data 5.Application Ecosystem IT Trends 1.Transition to IT as a Service 2.Software Defined Data Center 3.Multi-device Mobility 4.Big Data 5.Application Ecosystem The Shifting Landscape Delivery Methods Devices Applications Work Style

4. 4 IT–as-a-Service Phase 3 Automated Ops & Metrics Choice of Cloud Models Application Transformation Phase 1 IT Owned Apps and Services % Virtualized Quality & Agility Efficiency CapEx savings OpEx savings The Journey to IT as a Service Phase 2 Mission Critical Apps Standardize Services Start Private Cloud Many customers Consolidation Optimization Automation Reactive Proactive Software-Defined Datacenter

5. 5 The Problem – Complexity, Inefficiency, Inflexibility We spend too much time and money managing our data centers… Our independent operating units need to be efficient and respond to customers…. How can we efficiently provide the mission with the agility they need and maintain security?

6. 6 Phase 1: Data Center Consolidation ESX server Virtual to Virtual Dependencies ESX to VC Dependencies Virtualized On Relationship Physical to Virtual Dependencies VM s Discover instances of DBs, Application servers, etc Baseline Dependency mapping and logical groupings Workload performance baseline Capacity projections and optimization Architect target environment Virtualize Establish local consolidation points Build target environment Execute local consolidation Optimize virtual workloads Replicated licenses and roles ES Xi ES X ES Xi ES X vCenter Server vCenter Server vCenter Server vCenter Server vCenter Server vCenter Server Consolidate Re-establish dependencies Migrate vApps Complete regression testing Decommission source environments

7. 7 Continue with Virtualization of Workloads % of Workload Instances That Are Virtualized Source: VMware customer survey, Jan 2010, Jun 2011, Mar 2012 Question: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized. Main Drivers are Significant Investments in: Performance and availability Uptime and reliability Extensibility Security and hardening

8. 8 Phase 2: The Journey From Virtualization to SDDC Operations Management Virtual Networking and Security SDDC ITaaS Virtual Software-Defined Storage and Availability Automated Service Provisioning Organization Design Application Rationalization Costs and Pricing Performance

9. 9 Major Roles of Operations Management ! Problem Slow performance Config issueRollback change Maintenance Utilization / forecast Reclaim capacity Orchestrate changes Ensure and Restore Service Levels Optimize for Efficiency and Cost Reactive Proactive

10. 10 Virtualization Operations Predictive Analysis Overview  Comprehensive dashboard for cloud operations  Single tool to manage performance and capacity across multiple servers Benefits  End-to-end visibility into cloud infrastructure health and application services  Proactive incident avoidance  Optimize for efficiency and cost Results Reduce CapEx by up to 30% Increase utilization by up to 40% Improve MTTR by up to 26% Sources: Forrester Consulting, “The Total Economic Impact of VMware vCenter Operations Management Suite,” December 2012; Management Insight Technologies, “The Benefits of VMware’s vCenter Operations Management Suite,” September 2012

11. 11 Software Defined Storage Physical Infrastructure Compute Virtualization Abstraction Layer Abstract storage services Pool local and external storage Automated provisioning across local and external storage Support needs of “new” apps Software Defined Storage Software Defined Data Center SOFTWARE-DEFINED DATACENTER SERVICES VDC

12. 12 Transform the Network with Virtualization SOFTWARE-DEFINED DATACENTER SERVICES VDC Physical Infrastructure Software-Defined Data Center

13. 13 VMware vCloud Director Automated Service Provisioning Improves Agility Secure Private Cloud Organization: Mission ProgramOrganization: Support Services Organization VDCsCatalogs Organization VDCsCatalogs VMware vSphere VMware vCenter Server Resource PoolsDatastoresPort Groups (Gold) (Bronze) Provider Virtual Datacenters (Silver) (Gold) (Silver) (Bronze) Users & Policies

14. 14 VM: Compute Becomes Software-Defined SDDC Improves Agility and Reduces Cost $10,000 10 weeks 15 minutes VDC Software Defined Datacenter: Logical compute, networking, security, storage, availability Availability VLAN networks $1800 5 days Storage Firewall Security, monitoring + + But other services are still hardware delivered Physical Provisioning Time taken to provision datacenter services (weeks) Physical provisioning Virtualization Software defined compute The Software-defined Datacenter 10 weeks 15 minutes

15. 15 Benefits Achieved by SDDC (total customer base)

16. 16 Phase 3: Hybrid Cloud Computing Cloud Service Providers Internal Private Cloud Internal Private Cloud Operated solely for an Agency typically within the firewall Greater control over security, compliance, QoS Easier integration Support existing applications Hybrid Cloud Composition of two or more interoperable clouds, enabling data and application portability Service Provider Clouds Accessible over various networks for customer consumption Private and public clouds Efficiencies vary widely Commodity workloads Common workloads Option for new workloads Optimal cost efficiency Federated security model Integrated management Open standards for mobility

17. 17 How Does the SDDC fit within the Hybrid Cloud? Private Cloud Private / Public Cloud Service Catalog Self Service Workflow Portal Hardware Hyper- visors

18. 18 Diverse Access Points Browser Windows Virtual Desktop Android Universal App Catalog and Workflow Broker Entitlements, Policies and Reporting SaaS Services Apps & Data Everywhere Windows Legacy Apps Data Services Mobile Apps A New Architecture for End User Computing iOS

19. 19 Best Practice: Transforming the Role of the Organization ORGANIZATIONAL ALIGNMENT “Front Office” Capabilities Role Transformation Incentives & Accountability Communication A NEW BUSINESS MODEL Service Oriented Customer Driven Financial Transparency Services Broker PROCESS INNOVATION Monitoring & Management Planning & Architecture Budget and Finance Governance Don’t Underestimate the Importance of Communications and Training

20. 20 Best Practice: Establish the Business Model Define Services Categories Allocate All Costs Determine Unit Drivers Derive Unit Costs Determine Unit Prices Measure Service Consumption Invoice Business Units Funds Transfer From BU To IT 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 PRICING ANALYSISMETERING/INVOICINGSERVICE COSTING Phase 3 Operate Phase 2 Baseline Phase 1 Design The Business Model Includes Services, Costs, Pricing, and Budget

21. 21 Benefits of Transformation to IT as a Service 2004-082009-102011-2012+ IT PRODUCTION Infrastructure Focus BUSINESS PRODUCTION Applications Focus IT-AS-A-SERVICE Business Focus % VIRTUALIZED <1 Day 7 Days 40 Days 60 Days 80 Days 90 Days 42% 40% 20% 21% 23% 25% 20% 30 Days

22. 22 Gartner Data Center Conference Poll N = 167 What are your three biggest challenges in creating an IT as a Service offering? Challenges to Expect on the Journey

23. 23 Experience Matters – VMware is the SDDC and EUC Leader

24. 24 Questions??? Email: dbourgeois@vmware.com Blog: VMwareDoug.com Twitter: @VMwareDoug